Southeast Asian nations will express “concern” over “counterproductive” US tariffs, according to a draft statement shared with AFP on Tuesday, after Donald Trump threatened more than a dozen countries with higher levies.
The president’s trade war will likely be high on the agenda as foreign ministers from the Association of Southeast Asian Nations (ASEAN) gather in Kuala Lumpur for talks this week.
“We expressed concern over rising global trade tensions and growing uncertainties in the international economic landscape, particularly the unilateral actions relating to tariffs,” ASEAN foreign ministers said, according to a draft Joint Communique.
Without directly naming the United States, the ministers said tariffs were “counterproductive and risk exacerbating global economic fragmentation and pose complex challenges to ASEAN’s economic stability and growth”.
Trump sent letters to 14 countries, including Myanmar, announcing that duties he had suspended in April would snap back—even more steeply—in three weeks.
Among those targeted were top trade partners Japan and South Korea, which each face 25 percent tariffs.
Export-dependent Vietnam, which is also an ASEAN member, is one of only two countries to have reached a tentative agreement that spares it from Trump’s measures.
US-Myanmar trade
Indonesia, Laos, Thailand, Malaysia and Myanmar—all members of the ASEAN—face duties above 25 percent if they do not strike a deal with Washington by August 1.
According to a White House letter addressed directly to Myanmar junta chief Sen-Gen Min Aung Hlaing on Monday, the US levy on goods produced in Myanmar will be 40 percent.
The letter also specified that if Myanmar raises tariffs on imports from the US, the US will raise tariffs on Myanmar exports by the same amount in addition to the 40-percent base.
Asked about the message from the American president the following day, junta spokesperson Maj-Gen Zaw Min Tun said the regime was responding positively.
Zaw Min Tun expressed hope that the proposed negotiations with the US would be mutually beneficial and noted that the letter invited investment from Myanmar in the US economy.
“The first point is that the government will proceed with positive engagement and negotiation efforts,” Zaw Min Tun said, answering a question about the junta’s stance on the letter. “The second point is the hope that these negotiations will lead to mutually beneficial outcomes for both sides.”
A range of individuals and business entities in Myanmar are currently subject to targeted sanctions imposed by the US government, which US officials characterised as a response to the military coup of 2021 and the military regime’s subsequent human rights abuses.
Since Trump assumed office for his second term, the US has eased or stopped the enforcement of similar sanctions targeting Russian individuals and entities in response to Russia’s 2022 invasion of Ukraine.
It remains unclear how the renegotiation of the US-Myanmar trade relations will affect the current sanctions.
‘Uplifting’ message?
US Secretary of State Marco Rubio will join his ASEAN counterparts on Thursday and Friday as part of his first trip to Asia since taking his post.
Rubio will likely tell leaders that the United States wanted to “rebalance” its trade relationships, a senior State Department official told reporters on condition of anonymity.
His visit coincides with that of his Russian and Chinese counterparts, Sergei Lavrov and Wang Yi.
But an analyst told AFP that Rubio is expected to play a placating role after Trump’s latest tariff announcements.
“We can be hopeful for an uplifting message by Rubio, which reaffirms the importance of Southeast Asia to US foreign policy,” said Mustafa Izzuddin, an international affairs analyst with consultancy Solaris Strategies Singapore.
But he added: “Deepening engagement of the US in Southeast Asia may be stymied by Trump’s transactional approach to internationalism.”
The US leader had unveiled sweeping tariffs on imports on what he called “Liberation Day” on April 2, including a baseline 10 percent tariff on all countries.
But after turmoil in the markets, he quickly suspended all those above 10 percent for 90 days to allow for talks.
At a summit in late May, Southeast Asian leaders expressed their deep concern at Trump’s protectionist offensive.
The tariffs were due to kick back in on Wednesday and Trump sent the letters in advance of that deadline.
Malaysia’s trade ministry said Tuesday it would continue negotiations to reach “a balanced, mutually beneficial, and comprehensive trade agreement”.Thailand’s acting prime minister Phumtham Wechayachai told reporters Tuesday he wanted a “better deal”, adding that “the most important thing is that we maintain good relations with the US”.
